Outcome of Today’s GST Council Meeting at Srinagar (18.05.2017)
GST Council Meeting In Kashmir To Finalize Tax Rates
- The first day of 14th GST CouncilChaired by Arun Jaitley and the meet was attended by around 150 dignitaries, including Finance Ministers and Finance Secretaries of all the states.
- The GST will be a national sales tax that will be levied on consumption of goods or use of services.
- The GST is a destination-based single tax on the supply of goods and services from the manufacturer to the consumer and is one indirect tax for the entire country.
- It will replace 16 current levies – seven central taxes like excise duty and service tax and nine state taxes like VAT and entertainment tax – thereby creating India as one market with one tax rate.
- The Council is all set to meet the 1 July deadline for rolling out the new indirect tax regime ( As per J&K’s ministerHaseeb Drabu).
- GST Council Meeting has approved all nine rules for the rollout of the new indirect tax regime.
- The nine rules finalised by the council pertains to composition, valuation, transition, input tax credit, invoice, payment, refund, registration and return.
- GST Council has decided on rates for all 1,205 itemsout of 1211 items.
- Nearly 81 per cent of the items will fall under below-18 per cent GST rate slabs and only 19 per cent of the goods will be taxed above 18 per cent(As Per Revenue Secretary Hasmukh Adhia Ji Statement).
- Essential commodities(like food, cereals and items like soap) have been placed in the lowest tax bracket, that is in the nil or five per cent. Rates close to the exisiting incidence of excise duty coupled with VAT or service tax has been considered to be the rate under GST.
- Council will discuss the rate slab for important goods like gold and beedi rates tomorrow. No decision has been taken on Services tax rates and rates over auto sector.
- Sub-categories of commodities in the Harmonised System of Nomenclature (HSN) has not been discussed yet. HSN is a system of identifying commodities up to the finest sub-category used in global trade (As per J&K’s finance ministerHaseeb Drabu Ji statement).
- List of exempted items will also be decided tomorrow.
Compiled by CA Ankita Khetan
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